Copper, lead glitter in Europe, others skid

LONDON: Copper and lead prices firmed up on the London Metal Exchange on Monday, with red metal eyeing $3,000 a tonne resistance as last week's dollar-led fund buying continued, analysts said.

"It appears that speculative investors continue to use the dollar as a key guide to short-term trading activity," Barclays Capital analyst Ingrid Sternby said in a daily report.

In a daily report Man Financial analyst Edward Meir said: "We have been arguing in previous commentary that the effects of the sharp rise in energy prices have yet to be fully reflected in the October data."

Three-month copper was $18 higher at $2,971, probing initial resistance at $2,975 with a view to challenge $3,000.

Lead climbed $24 to $949. "There has been quite good volume for lead on LME Select 684 lots, We were selling early on, but by the look of the buyers it looks like fund interest," dealers said.

Aluminium was $1,820, down $8, while zinc also eased $8 to $1,092. Nickel fell $150 to $14,200 and tin was untraded, indicated down $90 at $9,060/070.

The dollar sank to a record low against the euro of $1.2986 in late Tokyo trade after a low of $1.2973 in New York on Friday. By afternoon, the euro had given up some of its gains quoted at $1.2930/32.

Analysts said investors would use a series of economic data this week and next from the US to assess the impact of high oil prices on growth.